JPMorgan ups Elastic target but ‘tactically cautious’ into earnings

JPMorgan raised the firm’s price target on Elastic to $138 from $98 and keeps an Overweight rating on the shares. The analyst sees a number of growth vectors going forward for Elastic but is “tactically cautious” going into the earnings print. Conversations with partners indicate Elastic will continue to benefit from its incumbency advantage and likely see a “big flush” of generative artificial intelligence workloads come its way, which along with improving cloud consumption trends and potential uptick in cloud migrations, could help it continue to put up solid cloud growth numbers over the next several quarters, the analyst tells investors in a research note. However, with the stock up 60% over the last 90 days, the firm thinks the near-term price action through the print “is more of an expectations game.”